Central Bank Surprise Move (No The Fed Did Not Raise Rates)? Sweden’s central bank, the Sveriges Riksbank, increased its quantitative-easing asset-purchase program by 65 billion Swedish krona ($7.64 billion) to 200 billion krona ($23.50 billion) by the end of June 2016. The increase in asset purchases comes at a time when the central bank sees a weakening outlook for inflation as a result of “poorer inflation prospects abroad as well as on a new assessment that demand needs to be stronger in Sweden in order to stabilize inflation around 2%.”

“Quarterly profits and revenue at big American companies are poised to decline for the first time since the recession, as some industrial firms warn of a pullback in spending. From railroads to manufacturers to energy producers, businesses say they are facing a protracted slowdown in production, sales and employment that will spill into next year. Some of them say they are already experiencing a downturn.”

“Caterpillar Inc. last week reduced its profit forecast, citing weak demand for its heavy equipment, and 3M Co., whose products range from kitchen sponges to adhesives used in automobiles, said it would lay off 1,500 employees, or 1.7 percent of its total, as sales growth sagged for a wide range of wares. The weakness is overshadowing pockets of growth in sectors such as aerospace and technology.”

No wonder the Federal Reserve did not raise rates – how will they be able to in December as the rate of change continues to slope lower!

Stay Tuned, Stay Hedged & Stay Patient! {TJM}

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